“The solar industry BP was involved in 10 years ago has very few similarities to the solar industry today,” says Finlay Colville, vice president of the research firm NPD Solarbuzz.

Colville says BP was one of the early companies in the solar business. Back then, the market was based on a different model — one more focused on research and development. He says now the business is all about efficient production and low prices, something more suited to the Asian companies taking a lead role in the solar panel-manufacturing business; so BP’s exit from solar doesn’t mean the industry overall is in trouble.

ShutterstockBP is outta here. Can Chinese companies pick up the slack?

It’s not all sunshine for those Asian companies either, though. China’s sick of losing money on its struggling solar-panel manufacturers, and is encouraging mergers amongst debt-ridden companies while also discouraging local governments from stepping in to support them. From The Wall Street Journal:

In December, China’s State Council, or cabinet, signaled it would stop funding money-losing domestic solar-panel makers, which are caught up in a global downturn for the industry …

Chen Yuan, chairman of China Development Bank, said Tuesday on the sidelines of China’s annual session of parliament that the bank would limit fresh lending to solar-panel companies.

Beijing is offering “indirect help to solar companies in the form of new policies and incentives for solar-power development and to boost demand for panels,” but the companies are probably still in for some rocky times ahead.